This transcript has been automatically generated and may not be 100% accurate.

... of course you know by now Apple snap ... Group street right in a profit ... made from if it didn't have a private group the clear almost ten billion dollars of consoles is sitting on a mountain of money is a company that means cash but bought ... profit growth is not the biggest problem for us is to the stock down there one percent to in trading ... no the biggest problem may be ... oh my God is Apple no longer cool ... no kidding I'm not kidding actually roughly put ... her on the Street Columnist is here to talk about this one is what you wrote about the day ... with a point more is his Apple no longer in a fit right ... right it is ... not something that everybody needs to have because of the profits ... the two to go to the profits as strong as they have been ... to charge the premium for its devices that it's been able to ... Apple needs to ... make them ... significantly better than the competition and five years ... Terry six years after the I phone was launched ... we're now looking at you know the fun that we see a hand is still very similar to fall and we're looking at ... you know the second version of this on the three G and ... became an into thousandeight are really the state as a change to other devices caught up so it's it's no longer match opposed along the revolutionary in it still doesn't have a good phone and I had from Steve Jobs and I pray you don't have a lot of that magic there was but let's be clear I the the ... the I phone was revolutionary and I and and Apple has had some revolutionary products ... but ... he will ... equal measure of of its success was due to some marketing brilliance in ... on things that they still got what it really I mean we know that there's no ... great big product coming in the imminent future rate ... so what are they need to do that before the start of a problem you see this morning is on last night's earnings call ... Tim Cook said ... we're not can see new products and still ... relief all of this year in twenty fourteen which means there with the company will go a full year ... without a new product release in the past for instance you see the new I phone ... in summer or fall but you may get a new I pad in March April for this year ... will at last you had a whole clove of new devices in all in the fourth quarter we third right what what direction the whole Big refresh the whole thing it looks like your Guinea get the sexy thing this year being refreshed all wants to ... do you see there he knows the unit sale you look at the I phone the I pad ... I mean what do they ... need to do to get ahead of ... the competition head of one of them it's important for people to watch is the worldwide developer conference Apple announced it today it's can it be in June this is when developers come together in Apple shows off for instance the new it should be the new version of ... I O s which is the opportune system that powers the I phone the I pad ... it's really a lot of critics are saying it's kind of stale ... you know ... when he won a single copy with Android ... it's their frilly similar you know it and effectively copied it ... but you know we now have very similar experiences so ... he Apple is no longer and it's ... game changing as it once was ... we need to see more ... coming out of Apple ... to to really justify ... like I said what we pay for these devices and this really was ... a scary thing for investors this quarter gross margins ... close they've been in over ten years ... and they're not coming back anytime soon ... with IP but in essence people are not paying up for ... the most expensive ... things and we are seeing a lottery to rely only on a lot more people buy ... cheaper older versions are any I phone for now this isn't necessarily a bad ... bad thing also buying more mini eye pads ... this isn't a terrible thing for Apple because to the extent they're able to get more people to buy ... does she devices a lot of those people may not have bought an Apple product at all ... and in the in the long run what's more important for Apple ... II's that's ... people stately and what they call their ecosystem ... if they're fine I Phones are keeping their music in iTunes ... they're more likely to buy another I phone them are likely to buy other Apple devices on Mac ... and I pad ... etc still having lower price point devices is good for the long run health of ... the business ... but in the meantime ... its pre feets pre scary for shoulders watching the gross margins key taken down ... and walk in the